Indian equities extended their morning losses and ended weak sharply as investors remained cautious. Nifty closed over 1 per cent lower at 24,850 levels. while the Sensex ended over 1,017.23 points or 1.24 per cent at 81,183.93 levels.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Sectorally, upon Goldman Sachs downgrade of SBI, the PSU Banking index bore the most brunt and was down over 3 per cent, with SBI shares down nearly 4 per cent at the last count. Followed by oil & gas pack which was the biggest loser after PSU Bank pack.

Santosh Meena, Head of Research at Swastika Investmart said,  One key factor triggered the fall could be weaker job data from the USA, fueling concerns about a potential global economic slowdown."
 
Additionally, India's weight in the MSCI Emerging Markets index has surpassed China’s, reaching its highest level. This raises the risk of a strategic reduction in weight allocation, especially given India's relatively high valuations, she added.

From a technical perspective, the 20-day moving average (20-DMA) of 24,850 serves as an immediate and critical support level. A breach below this could trigger further corrections toward 24,500 and 24,000 levels. On the upside, 25,150 presents the first resistance, followed by higher hurdles at 25,330 and 25,500.

Meanwhile, European markets also slipped with the sentiment turning wary, with the German DAX declining 0.6 per cent.